MUMBAI: The rupee fell marginally on Monday and was trading near one-month lows as the dollar gained against the global majors and shares
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continued to trade choppy. At 12 noon, rupee was at 48.38 against the dollar, compared with Friday close of 48.10.
The dollar edged lower against major currencies on Friday, after a series of positive data from US boosted hopes of a economy recovery.
"The local unit is tracking the dollar's movement against the major currencies, but there is not much action on the importers side. It will pick up soon," said a dealer at a large private sector bank.
Government bonds traded range-bound but largely lost ground on Monday afternoon after traders continued to book profits ahead of the Rs 15,000 cr auction this week. This is despite RBI announcing lower yields at the last week's Rs 15,000 cr auction. The central bank announced another auction of Rs 15,000 crore on the coming Friday, the sixth time that such a higher amount has been announced.
Dealers say action would continue to remain range-bound till the budget, only after which yields would take a definite direction. They added that some bonds had rallied after Thursday’s buyback, hence traders have been booking some profits since Friday.
The most commonly traded bond - the 5 year bond - traded unchanged at 6.64% at 12 noon. The benchmark 10-year 6.05% paper had no trades.
